Corporate structure is the organizational chart that lists job titles and reporting relationships that a company creates to define accountability as well as accountability. It’s a crucial element of any company – whether it’s a small business or a large global enterprise – and is instrumental in assisting businesses to expand. It helps to communicate and provides understanding of the company’s objectives and the chain of command. Without a well-organized corporate management structure, companies are likely to be confused and unorganized.
Shareholders own shares of the company, and they have the right to vote on important business decisions. They can also withdraw their support when they are dissatisfied by the direction of a company.
Directors are those elected by shareholders to oversee the operation of a company. They decide on the operation policies, expand the business, and approve financial decisions. In addition, they also hire and fire management. Directors are accountable for ensuring that shareholders’ interests are taken into consideration when making decisions.
Managers are those that oversee the day-to-day operations of a company and meet the objectives set by the board of directors. They are also accountable for keeping their board of directors up-to-date about the current state of the business and any potential risks.
The matrix structure is similar in concept to the traditional line structure however it involves teams that are grouped around markets or products instead of job roles. This type of structure is beneficial to companies operating across different regions and industries to avoid duplication of effort, but it can be challenging to expand.